Mod D - Mod D Student 1 Internal auditors are always employed by the organization that they audit such as a bank hospital or industrial company True

Mod D - Mod D Student 1 Internal auditors are always...

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Mod DStudent: ___________________________________________________________________________1.Internal auditors are always employed by the organization that they audit such as a bank, hospital, or industrial company. True False2.The Government Accountability Office (GAO) is headed by the U.S. Congress. True False3.Internal auditors perform operational audits but do not perform financial audits. True False4.The goal of operational auditing is to help managers discharge their management responsibilities and improve profitability. True False5.Internal auditors should be independent when obtaining evidence in the sense of being free from direction or constraint by the manager of the business unit under audit. True False6.Having the authority and responsibility to report to the vice president for finance or the treasurer enhances an internal auditor's independence. True False7.The stated objective of internal auditing is phrased in terms of service to "the organization," not just to management. True False8.The GAO emphasizes the accountability of public officials for the efficient, economical, and effective use of public funds and resources. True False9.Performance audits determine whether an entity has complied with laws and regulations for those transactions and events that may have a material effect on the financial statements. True False10.Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. True False11.The auditing standards of the Institute of Internal Auditors required of internal auditors are similar to the requirement of GAAS for practicing CPAs. True False12.The GAO standards go beyond the AICPA's GAAS in a number of respects. True False13.External auditors accepting engagements to audit federal grants and programs must follow both GAAS and the GAO standards. True False14.The Single Audit Act of 1984 replaced duplicative grant-by-grant audits with a single audit report on which all agencies can rely. True False
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15.Under the Single Audit Act of 1984, only CPAs and GAO auditors can conduct "single audits." True False16.Efficiency, economy, and program outputs may be measured only in terms of monetary expenditures. True False17.Governmental and internal auditors are more concerned with management controls because they directly affect economy, efficiency, and program results. True False18.An expert in detecting and investigating fraud is a certifiedfraudinvestigator. True False19.Auditors are concerned about internal control strengths and weaknesses; fraud investigators are mostly concerned about fraud weaknesses. True False20.Forensicaccountingis a term used to describe work that is performed on companies that are no longer in business. True False
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  • Spring '12
  • janigrt
  • internal auditor, Single Audit Act

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